Economic Growth in Iraq
Economic momentum is likely waning so far this year. Oil production flatlined in annual terms in January–April, weighed on by OPEC+ cuts and the suspension of 450,000 barrels per day of crude flows to Turkey in March. Tougher OPEC+ output curtailments from May will be further dampening the energy sector in the remainder of Q2. In addition, a dollar shortage has harmed the non-oil sector. In politics, the expansionary 2023–2025 budget presented in March has still not been approved by Parliament due to disagreements between Kurdish and Iraqi parties. This lack of approval will be capping government spending. Moreover, strained relations between Kurdistan and the federal government could complicate the resumption of oil exports to Turkey, hitting the external sector.
Iraq Economic Growth Chart
Iraq Economic Growth Data
|Economic Growth (Nominal GDP, ann. var. %)||12.6||21.3||2.7||-21.9||39.6|